What's Going On With AST SpaceMobile Stock After Hours?

AST SpaceMobile Inc ASTS shares are volatile in Thursday’s after-hours session after the company announced a strategic investment from AT&T Inc T, Alphabet Inc GOOG GOOGL and Vodafone. AST SpaceMobile also announced a $100 million offering of common stock.

What To Know: AST SpaceMobile shares surged in after-hours trading Thursday after the company announced a $155 million strategic investment from AT&T, Google and Vodafone.

The strategic investment will provide aggregate new financing of up to $206.5 million in gross proceeds, as the company plans to draw up to $51.5 million from its existing senior-secured credit facility.

“Our vision at AST SpaceMobile has always been to chart a course of collaborative innovation and integration with the world’s leading wireless companies, which is why we are so thrilled to be welcoming this new strategic investment from AT&T, Google and Vodafone. With this strategic investment, we are gaining capital, invaluable expertise, and strategic partnership,” said Abel Avellan, chairman and CEO of AST SpaceMobile.

The strategic investment is intended to support the commercial roll-out of AST SpaceMobile’s network. Additionally, the new investors expanded their strategic and commercial ties to support the buildout of the SpaceMobile network.

About 30 minutes after the stock surged on the strategic investment announcement, AST SpaceMobile announced a public offering of $100 million of its Class A common stock. The company said it intends to use the net proceeds for general corporate purposes.

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ASTS Price Action: AST SpaceMobile shares traded up to around the $6 level after hours before pulling back on the offering. The stock was down 7.6% at $3.84 at the time of publication, according to Benzinga Pro.

Photo: Arek Socha from Pixabay.